SC urges RBI to develop new proforma for cheques

NEW DELHI: The Supreme Court has suggested that the Reserve Bank of India (RBI) consider developing a new proforma for cheques that includes the purpose of payment — a step the court said would increase the credibility of cheque payments and prevent misuse.

The top court, seeking to speed up the trials of people who write cheques that bounce, also asked banks to consider developing a mechanism to share the details of such people with the complainant and the police. Such details should include the email address, mobile phone number and address of the people so that their presence at the trial can be ensured. Bounced cheque cases come under Section 138 of the Negotiable Instruments Act that fixes criminal liability for writing such cheques. “With ensuring the credibility of cheques, it is equally important that cheques are not allowed to be misused giving cause to frivolous litigation. The Reserve Bank of India may consider developing a new proforma of cheques so as to include the purpose of payment, along with other information mentioned above to facilitate adjudication of real issues”, a bench of Chief Justice of India SA Bobde and justice L Nageswara Rao held. The decision was given on March 5 in a bounced cheque case from Gujarat which was contested for more than 15 years in various courts right up to the Supreme Court.

The apex court noted that one of the main reasons for delays in deciding cases under Section 138 was the absence of the accused in the trial court. “As per recent study, more than half of the pending cases, i.e. more than 18 lakh cases, are pending due to absence of accused”, the court observed.

The court even suggested coercive measure against the accused including attachment of property to secure their presence at trial.

“Further, a mechanism may be developed to ensure the presence of the accused even by way of coercive measure, if required, taking effect from Section 83 of Cr.P.C. which allows attachment of property, including movable property”, the judgment said.In addition to the above, Supreme Court also urged high courts to consider setting up exclusive courts to deal with matters relating to Section 138 in places where the backlog of such cases is high.

SC TO SPEED UP TRIALS OF PEOPLE WHO WRITE CHEQUES THAT BOUNCE, HAVE ASKED BANKS TO CONSIDER DEVELOPING A MECHANISM TO SHARE DETAILS OF SUCH INDIVIDUALS